Question

What are the steps in balancing an account?

Answer 1

The following steps can be used while balancing an account:

• Total both the credit and debit sides of the account.
• Find the difference between both sides of the account.
• Balance or allocate the amount on the side which has a shortage.
• Close the account and record the date of closure.
• Horizontally total the account on both sides.
• Carry forward the balance amount accordingly to the next opening balance.

Also read: Accounting MCQs